Canada's spectrum auction ends, raises C$4.25 billion

TORONTO (Reuters) - Canada's auction of wireless spectrum
ended on Monday and new players appear poised to enter the
market and challenge the country's Big Three carriers in a
fight for mobile phone subscribers.

The auction of airwaves over which wireless services are
delivered raised C$4.25 billion ($4.25 billion) in 331 rounds
and almost two months of bidding. The proceeds were more than
twice the amount analysts had expected.

"The auction exceeded our expectations in terms of the
level of competitive bidding activity," Industry Minister Jim
Prentice said in a statement.

Wireless spectrum has become a highly desirable asset for
telecom companies that see data services such as wireless
e-mail, text messaging and multimedia downloads as key to their
growth. Having more spectrum lets companies offer a broader
menu of services to a larger base of subscribers.

"Over the next few months, I expect every player -- large
and small -- to be speaking with each other to find both
strategic as well as tactical opportunities to consolidate
market share," said Carmi Levy, an industry analyst at AR
Communications.

According to the auction website, Rogers Communications
Inc, which owns Canada's largest wireless firm, was the top
bidder with offers totaling C$999.4 million. The amount let the
company secure spectrum in every area of the country, it said.

Rob Bruce, the president of Rogers' wireless unit, said the
spending was a "responsible investment" and added the company
sees diverse and growing opportunities in broadband wireless
data services.

Telus Corp, Canada's No. 2 phone company, had C$879.9
million in standing high bids. BCE Inc, the biggest telecoms
company in the country, had bids totaling C$740.9 million.
Continued...